Describe Revenue Expenditure

Question

Describe briefly the term Revenue Expenditure?

Answer 1

Revenue Expenditure is the expenditure acquired in one accounting year and profits from that is also having in the same period only. This expenditure doesn’t enlarge the earning capability of the business however maintains the existing earning capability of the business. It involved all the expenditures that are acquired throughout day to day running of business. The profits of this expense are for short period and are not forwarded to the subsequently year. This expense is on frequent nature.